Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The sales manager of a large automotive parts distributor wants to estimate the total annual sales for each of the company's regions. Five factors appear

image text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribed
The sales manager of a large automotive parts distributor wants to estimate the total annual sales for each of the company's regions. Five factors appear to be related to regional sales: the number of retail outlets in the region, the number of automobiles in the region registered as of April 1, the total personal income recorded in the first quarter of the year, the average age of the automobiles (years), and the number of sales supervisors in the region. The data for each region were gathered for last year. For example, see the following table. In region 1 there were 1,739 retail outlets stocking the company's automotive parts, there were 9,270,000 registered automobiles in the region as of April 1, and so on. The region's sales for that year were $37,702,000. Number of Number of Personal Annual Sales Retail Automobiles Income ($ Average Age of Number of ($ millions), Outlets, Registered billions), Automobiles Supervisors, y x1 (millions), x2 x3 (years), X4 x5 37.702 1,739 9.27 85.4 3.5 9.0 24.196 1,221 5.86 60.7 5.0 5.0 32.055 1,846 8.81 68.1 4.4 7.0 3.611 120 3.81 20.2 4.0 5.0 17.625 1,096 10.31 33.8 3.5 7.0 45.919 2,290 11.62 95.1 4.1 13.0 29.600 1,687 8.96 69.3 4.1 15.0 8.114 241 6.28 16.3 5.9 11.0 20.116 649 7.77 34.9 5.5 16.0 12.994 1,427 10.92 15.1 4.1 10.0 3. Consider the following correlation matrix. Which single variable has the strongest correlation with the dependent variable? The correlations between the independent variables outlets and income and between outlets and number of automobiles are fairly strong. Could this be a problem? What is this condition called? sales outlets cars income age outlets 0.899 automobiles 0.605 0.775 income 0.964 0.825 0.409 age 0.323 0.489 0.447 0.349 bosses 0.286 0.183 0.395 0.155 0.291 c. Conduct a global test of hypothesis to determine whether any of the regression coefficients are not zero. Use the 0.05 significance level. (Round your answer to 2 decimal places.) | _ d. Conduct a test of hypothesis on each of the independent variables. Would you consider eliminating "outlets" and "bosses"? Use the 0.05 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) Delete "outlets" and "bosses". Critical values are and

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus Early Transcendentals

Authors: Howard Anton, Irl C Bivens, Stephen Davis

11th Edition

1118883764, 9781118883761

More Books

Students also viewed these Mathematics questions

Question

Speak clearly and distinctly with moderate energy

Answered: 1 week ago

Question

Get married, do not wait for me

Answered: 1 week ago

Question

Do not pay him, wait until I come

Answered: 1 week ago